[Limdep Nlogit List] Maximize exponential valuation function

Olle Westerlund olle.westerlund at econ.umu.se
Fri May 18 23:48:55 EST 2007


>Hi!
>
>I'm currently trying to run a double-bounded 
>valuation function by using the MAXIMIZE command 
>in LIMDEP. More specifically, I try to estimate 
>an exponential valuation function, where income is included as log(income).
>
>I have realized that the size and the 
>significance of the income parameter seem to be 
>dependent on the scale of the income variable 
>(i.e. if it is defined in terms of $ US , 
>hundreds of $ US, or thousands of $US). The 
>p-value I get varies between 0.98 to 0.007, 
>depending on how the income variable is defined. 
>Log-likelihood value remains the same.
>
>In all cases the iteration process exits 
>normally and changing the start values does not change the outcome.
>
>
>Can someone help me figure out what´s going on?
>
>
>Thanks on beforehand!
>
>Olle W

_______________________

Olle Westerlund
Associate Professor
Department of Economics
Umeå University
SE-901 87 Umeå
Sweden

Phone:+46-(0)90-786 61 48
            +46-(0)730-250 233







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